Answer:
The correct answer is option D
Step-by-step explanation:
The total amount to be paid when interest is compounded monthly
[tex]P(1 + \frac{r}{n})^{nt} \\= 23,570 (1 + \frac{\frac{10.43}{100} }{12})^{12 * 5} \\= 23, 570 * 1.68\\= 39597.6\\[/tex]
The amount to be paid per month
[tex]= \frac{39597.6}{60} \\= 660[/tex]
The nearest answer to this value is option D
The monthly payment for a 5-year car loan is $660.25
The formula for calculating the compound interest is expressed as:
A = P(1 + r/n)^nt
Given the following
A = $23,570
r = 0.1043
t = 5 years
n = 12
Substitute into the formula
A = $23,570(1 + 0.1043/12)^60
A = $39,615.53
The monthly payment = 39,615.53/60
The monthly payment = 660.25
Hence the monthly payment for a 5-year car loan is $660.25
Learn more on compound interest here: https://brainly.com/question/24924853
